Can I hire my children?

Can I Hire My Children?

I have an S-Corp. Can I hire my teenage children to work for me, and if so, how much can I pay them annually?
Yes you can hire teenage children in your business as a deductible business expense for bona fide work and pay them reasonable wages for that work even if your business is an S-corp. However, proprietorships and partnerships that hire family members will receive even greater benefits when it comes to payroll taxes leading to even larger tax savings. So maybe you could assess your business operations and see if another entity might further your ability to better secure your financial needs.